Government Patent Reform to Spur Social Innovation

The government does have the ability to spur social innovation. An article this week highlighted one such way: tax reform. Another way in which it can encourage social innovation and impact is through reforming the patent system. Patents were originally created to ensure that innovation occurred and was rewarded. Now, it is hard to create products without infringing on someone's patent (i.e. Plumpynut). The case of Plumpynut is an example of a situation in which patents are hindering large-scale social impact of an innovation. Our current patent system allows patent holders to gain much more than their social contributions. Economic inefficiency and its resulting deadweight loss can be mitigated through a reformed patent system. Question: Clearly there are some positives association with patents in the realm of social innovation. Do the benefits outweigh the costs?